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Too Broke to File Bankruptcy

James Doan - Friday, August 17, 2012

The Los Angeles Times tells us this morning that the economy is improving. Apparently, the U.S. economy rose .4% in July, "providing further evidence of an economy that is regaining some momentum" (emphasis added).

Further evidence? I just got off the phone with a sobbing client who couldn't afford to make a payment toward their chapter 7 bankruptcy case. She was afraid we would close her bankruptcy file. "I can send you $50.00 this month, or I can buy milk and eggs for my kids."

"Feed your kids," I told her. Her husband isn't making the commissions like he used to, and she got laid off from her part-time employment. She is not alone. At Doan Law Group, we offer our clients reasonable monthly payment plans for their bankruptcy cases. Not many are able to spring for all the fees at once, so they can make payments. Usually, payments are $200 per month. We have reduced that payment to $100 per month for many of our clients due to their lack of ability to pay even the meager fees involved with a bankruptcy case.

Instead of getting $100 payments, we're getting $20 payments. We even got a $5 payment this month with a very sad note concerning that particular client's state of economic, and spiritual, affairs.

Is this the further evidence of economic recovery that the Associated Press is referring to?

I used to think that since I am a bankruptcy attorney, and have been for over 15 years, that naturally my paradigm of the world has been influenced by the type of work I do. I deal with people flat broke, whose last resort is bankruptcy. I deal with people who were at the top of their game, and are now picking up pennies off the street and taking cans to the recycler.

Outside of the people I meet at work, I hear the same tune; layoffs, unemployment, staff reductions and people looking for work. Many are leaving the state and moving east, in hopes of reducing their exorbitant Orange County cost of living.

The Associated Press can look at statistics all day long, but at the end of the day, the real measure of the economy can be found in the desperation of dads and moms who are struggling to feed their children, and single folks who are facing foreclosure, wage garnishment, or eviction, and are too broke to file bankruptcy.

Even if you are too broke to file now, Doan Law Group can help you set up a plan to file for bankruptcy relief in the future with reasonable payment plans. We understand tough times, and we're here to help.

In addition to bankruptcy relief in Orange County and the Inland Empire, Doan Law Group also assists clients with real estate needs, including loan modifications and short sale services. We are successful in stopping foreclosures and creating workout plans in and out of bankruptcy.